Always Do a Market Research.
As every entrepreneur will know, starting up a business is taking a step into the unknown; it is therefore essential to arm your business with as much information and data on your target market as possible.
Many times entrepreneurs get shocked by failure when the new venture they thought would flourish fails. This is normally caused by not doing a proper research but basing everything on assumptions.
A person approached me for guidance, he wants to invest K1,000,000 to start producing roofing sheets. He shares with me the source of the moulding machines from china, the cost of production and the many millions to be realised from sales since many Zambians are building now.
Market Research Questions.
1. Who are your major competitors?
2. What challenges are your competitors facing?
3. What will make you different?
4. What will be your competitive niche?
When I noticed that he had not put the above questions into consideration, I couldn’t ask further. I told him to hold on to his pension money and go back to a drawing board before he loses what he has worked hard for.
Advantages of Market Research.
When we started out in the Tech company I invested time and finances in research, I had all the facts at my finger tips. I knew our competitors inside out, as a result within a year of operation we were market leaders, beating companies that have been in the market for over 10 years.
Market research should never be underestimated. Many successful new businesses enjoy longevity because their owners conduct regular market research to understand their target market, identify consumer problems and pinpoint realistic competitors.
So step out and do your research on your dream venture.